UK’s Southern Water has entered into talks with creditors to reshape its capital structure and avoid debt woes similar to Thames Water, Bloomberg News reported on Wednesday citing people familiar with the matter.
The parties are discussing how to accommodate a 900 million pound ($1.16 billion) equity injection and what other tweaks may be necessary to stabilize the company’s finances, the report added.
Southern Water had said in February it intended to raise the 900 million pound equity through its shareholders.
UK’s largest water firm, Thames Water, narrowly avoided a collapse last month after its debt lifeline of 3 billion pounds was approved by the court, helping its liquidity issues.
Southern Water provides water and wastewater services to about 2.6 million customers across East and West Sussex, Kent, Hampshire and the Isle of Wight, according to its website.
Southern Water did not immediately respond to a Reuters request for comment.
($1 = 0.7767 pounds)
(Reporting by Prerna Bedi)
